The Asian Development Bank (ADB) and the Government of Mongolia have launched a pilot project aimed at restoring grassland carbon, strengthening ecosystem resilience, and developing a scalable pathway to sustain grassland services through international carbon markets. The Grassland Carbon Restoration Project seeks to generate carbon credits through improved livestock grazing and grassland management, which could mobilize carbon finance to rehabilitate degraded rangelands, combat desertification, and enhance Mongolia’s adaptation to extreme weather events.
Shannon Cowlin, ADB Country Director for Mongolia, emphasized that the country’s grasslands are central to its heritage, economy, and ecological health, but are increasingly threatened by climate change and overgrazing. She noted that this first-of-its-kind pilot project is expected to demonstrate how climate and carbon finance can restore grasslands while supporting rural resilience. The insights gained will inform larger-scale carbon credit initiatives and strengthen Mongolia’s engagement with international carbon markets.
The project will involve collaboration between ADB, the Government of Mongolia, and local herder communities to quantify carbon sequestration potential from improved grazing and livestock management practices. It will test standardized methodologies for measuring soil organic carbon, establish monitoring, reporting, and verification systems aligned with international carbon credit standards, and explore private sector participation along with benefit-sharing mechanisms for traditional herding communities.
ADB is working closely with the Ministry of Food, Agriculture and Light Industry, in partnership with the Ministry of Environment and Climate Change and the Ministry of Economy and Development. The initiative supports Mongolia’s climate adaptation efforts, biodiversity protection, and rural livelihood diversification, while enhancing the country’s readiness to participate in international carbon markets under Article 6 of the Paris Agreement. The project will also contribute to the implementation of Mongolia’s forthcoming Climate Change Law, which will regulate carbon credit issuance.
ADB, founded in 1966 and owned by 69 members, is a leading multilateral development bank that supports inclusive, resilient, and sustainable growth across Asia and the Pacific. The Bank works with its members and partners to address complex challenges using innovative financial tools and strategic partnerships aimed at transforming lives, building quality infrastructure, and safeguarding the environment.
